Q: What should employers know about the new amendments to the New York Fair Credit Reporting Act?

A: Beginning on April 18, 2026, employers in New York, with few limited exceptions, will be barred from obtaining or using an individual’s credit score or consumer credit history during or after hiring of an employee. Specifically, Governor Kathy Hochul has made it an “unlawful discriminatory practice” for an employer or prospective employer to use a candidate or employee credit score for any employment purpose, and it is an unlawful discriminatory practice to even request a credit score from the relevant individuals.

If I am hiring for a position requiring financial trust and skill, are there exceptions I can use?
The amendments to the New York Fair Credit Reporting Act also include several relevant exceptions for employers that include:

• Persons in a non-clerical position who have regular access to trade secrets,¹ intelligence information, or national security information
• Persons in a position with:
  • (A) Signatory authority over third-party funds or assets valued at $10,000 or more
  • (B) Fiduciary responsibility to the employer with authority to enter financial agreements valued at $10,000 or more on behalf of the employer

For employers that wish to continue using credit scores, the law provides only limited and narrowly-defined exceptions for employees who do not fall within the categories above, such as:

• An employer that is required under state or federal law, or...

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